How Distributed Energy Resources Can Lower Power Bills, Raise Revenue in US Communities

Distributed energy resources (DERs), such as rooftop solar, batteries, and electric vehicles, offer US communities opportunities to lower utility bills, increase grid resilience, and generate revenue. The document highlights the role of the Inflation Reduction Act and FERC Order No. 2222 in reducing costs and allowing DER aggregations to participate in wholesale energy markets. It recommends that local governments utilize aggregation, demand response, and federal funding tools to maximize these benefits.

• Distributed energy resources (DERs)—including rooftop solar, energy storage, smart thermostats, and electric vehicles (EVs)—can lower utility bills for residents and businesses, improve grid resilience, and help communities achieve equity and climate goals.
• Two federal mechanisms are accelerating DER adoption: the Inflation Reduction Act provides direct financial incentives and rebates for technologies like battery storage and heat pumps, while FERC Order No. 2222 enables bundles of DERs to receive financial compensation for providing power and services to the grid.
• Local governments can generate revenue by aggregating DERs to participate in wholesale energy markets, either by contracting with third-party aggregators or by managing the process directly if they have the necessary expertise. FERC Order No. 2222 specifically mandates that regional grid operators allow these resources to supply services through aggregations, with a minimum size requirement no greater than 100 kW.
• Municipalities can utilize demand response strategies, such as shifting the charging of electric municipal fleets to nighttime during high-demand periods, to generate revenue or reduce costs. In areas without wholesale market access, they may use retail net energy metering (NEM) or retail demand response programs.
• To accelerate adoption, local governments can use the Federal Funding Opportunities for Local Decarbonization (FFOLD) tool to identify grants, offer property tax exemptions or production incentives for residential solar, and conduct educational campaigns regarding federal rebates.

APA

World Resources Institute (2022). How Distributed Energy Resources Can Lower Power Bills, Raise Revenue in US Communities. https://www.wri.org/insights/distributed-energy-resources-explained-us

Chicago

World Resources Institute. How Distributed Energy Resources Can Lower Power Bills, Raise Revenue in US Communities. 2022. https://www.wri.org/insights/distributed-energy-resources-explained-us.

Wikipedia

{{cite report |author=World Resources Institute |title=How Distributed Energy Resources Can Lower Power Bills, Raise Revenue in US Communities |date=30 September 2022 |url=https://www.wri.org/insights/distributed-energy-resources-explained-us |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2022how, author = {{World Resources Institute}}, title = {{How Distributed Energy Resources Can Lower Power Bills, Raise Revenue in US Communities}}, institution = {World Resources Institute}, year = {2022}, month = sep, url = {https://www.wri.org/insights/distributed-energy-resources-explained-us}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }